Melbourne is heading for a total of 3,000 auctions for the month of September, more than last year’s total of 2,463. This weekend, there were 818 auctions held, with 617 selling, and 201 being passed in (91 of those on a vendor bid) resulting in a clearance rate of 75%. In addition to the auctions, there were also 368 private sales recorded over the weekend.
We’re noticing that buyers are shunning B and C-grade houses or units, stepping up the competition for A-grade preoperties. This trend is driving up prices in superior streets, as buyers are leaning towards being able to “move right in” instead of going for second-tier properties that may be unrenovated, on main roads or near industrial sites.
Well informed buyers recognise that some properties, based on their location or architecture, are more scarce. These A-grade properties have attracted multiple bidders at auctions, and in some cases, there has been fierce competition.
The decline in the Australian dollar last week, is also one to watch. If it falls below US85c, its possible that Australian real estate will be even more attractive to overseas buyers.
Many vendors who had planned to have an auction in September, are now going to market in October and November which will benefit buyers. A surge in property stock levels in late-spring will give buyers more scope to pick and choose.